STUDY TEAM

IFTEKHAR ENAYET ULLAH Waste Management Expert

A.H.MD.MAQSOOD SINHA Waste Management Expert
A.T.M. NURUL AMIN Environmental Economist
KAMRUL HASAN KHAN Socio-Economic Specialist
SHYAMAL KUMAR ROY Environmental Engineer
 Executive Summary

Lead is considered as number-one hazardous substance by the scientific community. More this
information started to be known to the public, more and more government policy and actions have
been put in place in the developed as well as developing countries. Switching from leaded gas to
unleaded gas in many countries including Bangladesh shows that if scientific information,
particularly on health hazards associated with substance like lead, get disseminated, it does not
take too long for public policy and actions to follow and they to succeed.

This study was undertaken to generate and analyse essential information and data on used lead-
acid battery (ULAB) recycling in order to explore potential public policy and action options. It
appears that unlike the heightened concerns on leaded gas and its associated health hazards
(particularly children’s IQ reducing effect), the awareness and environmental impact associated
with exposure to lead from working with the used lead-acid batteries (ULABs) -- so widely used
for the large and still growing vehicular population -- is dangerously low.

Despite the associated health hazards, economic activities have been growing centering
collection, reuse, smelting and recycling of ULABs in Bangladesh. As a labour-abundant and
capital-scarce economy, this is of course a boon to the Bangladesh economy. But these gains to
be sustained or potentially increased, it is important to know ULAB recycling chain more in-depth.
Also, since the Basal Convention’s original agreement and the subsequent
amendments/decisions, no country can remain idle without developing and implementing an
environmentally sound ULAB recycling management system.

In the above background, this study sought to generate adequate information and data base for
conducting necessary analysis to address key issues related with ULAB recycling in Bangladesh.
These issues include:

• The supply and demand conditions of lead-acid battery (LAB) production in Bangladesh

• The role of secondary lead in manufacturing of batteries in Bangladesh

• The existing process/value chain of ULAB recycling

• The problems faced by the process/value chain actors

• The market structure of (LAB) manufacturing, ULAB collection and smelting in the
country

• Technology in use in ULAB recycling

• The health hazards and environmental impact associated with the ULAB collection
process and smelting

• Scope and mechanism of interventions to improve the ULAB collection, smelting and
recycling activities from social, economic and environmental perspectives.

The study’s major findings can be noted as follows:

• Collection and smelting activities of ULABs are well dispersed throughout the country.
Dhaka Division alone however accounts for 50% of smelting activities, obviously this is
due to Dhaka city’s dominance in the Division. Next concentration is in Khulna Division.
No smelting is done in Syhlet and Barisal Division. Dhaka is the major center of ULAB
collection, separation and smelting. Whereas separation activities are clustered in
 Waisghat, Dholaikhal and Jaikali Mondir, smelting activities are mostly located in the
outskirts of the city such as Kholamora and Kamrangirchar.

• The market structure of new lead-acid battery manufacturing is marked by monopoly

characteristics (Rahimafrooz alone accounts 73% of the formal sector manufacturing of
new lead-acid batteries; the share remains high -- 67%--even when the informal sector’s
contribution -- 9% -- is included).

• Collection activities, in which mostly the informal sector labour and enterprises are
involved, take place in a very competitive market condition.

• Smelting activities operate in a monopolistic market (four firms account for about 50% of
the smelting industry).

• On the buyers side of secondary lead (i.e., lead recovered from batteries), the market
condition is quite monopsonistic: The smelters are to sell their recovered lead largely to
two big buyers (Madina Metal and the Khorshed Metal).

• Presently two chains are working in used lead-acid battery collection: (One, User small
buyer /dealer broker repairer/rebuilder vangari shop smelter lead user;
two, User smelter).

• The investigation of the increase in value by change of ‘actor’ in the recycling chain
reveals that price of used battery get increased by about 100% in each stage of a
transfer from one actor to the other. Value of a used battery increases by large margin if it
is sold by separating its parts.

• Approximately, 3,420 tons of lead are recovered per year from ULABs in Bangladesh.
This allows to meet 60% of the total lead requirement of the country from secondary lead.

• Market value of yearly recovered lead is estimated to be Tk 31 crore

• Savings from import replacement is estimated at Tk 31 crore/Tk.36 crore depending on

the assumed import price.

• Market value of reused plate from ULABs is estimated as Tk. 20 crore.

• Maximum lead recovery takes place from LABs but a considerable amount also comes
from CI Sheet (Tin). Lead is used with Zinc for galvanizing tin sheets.

• Market price of locally recovered lead is around Tk 60,000 per ton but the price of
imported lead is Tk. 90,000/ton.

• Overall, ULAB recycling activities are providing income-earning opportunity to thousands

of informal sector workers and their enterprises plus they are playing a significant role in
saving foreign exchange.

• On smelting technology, the study findings suggest the need and scope of increasing the
recovery rate of lead from ULABs . Three types of technology are currently on use. These
are: Rotary Furnace (recovery rate 65%), Mondir Chulli (recovery rate 60%), and the Pan
or Hole process (55-60%). These rates compare quite unfavourably with the recovery
rate in the developed countries (75%+). This suggests the scope of increasing the lead
recovery rate in Bangladesh by upgrading the smelting technology currently in use.
 • Main pollution occurs when coal is used as fuel for smelting. But other than air pollution
from coal burning, soil and water pollutions are also widespread in smelting.

• Persons dealing with battery recycling are not aware of environmental pollution or health
hazard of recycling activities.

• No rules and regulations for control, management and handling of ULABs have been
framed so far by the government.

On the basis of the findings and observations of the ULAB recycling in the country, the study has
finally developed three policy options for consideration. In one option, the emphasis is laid to
combine economic incentives with regulatory support; in the second option, regulatory measures
are to be used to make the formal sector key players in obtaining used batteries; and in the third,
strict regulatory provision is suggested for promoting more effective collection and adoption of
environmentally sound technology. This is to be made implementable through additional incentive
provisions for compliance.

It is to be noted that all three options bear the hallmark of an ‘adaptive approach’ in the sense that
each seeks to recognize and preserve the vital role of the informal sector in the collection
process.Each also seeks to introduce some measures of regulation with varied dose of incentive
provisions in order to maximize collection of ULABs and promote an environmentally sound
recycling process.They vary basically in terms of the degree of regulation and in no option
regulation per se is seen adequate for arriving at an economically viable, socially desirable and
environmentally sound management of lead-acid batteries in Bangladesh. Option 3 may appear
to be relying more on regulation. But even in this option a sole reliance on regulation is not
envisaged because regulation alone will not ensure supply of used batteries to the recycling
centers. This is the reason an extra incentive provision is included in Option 3 for ensuring
compliance to regulation.

Overall, a significant government intervention and financial support need to be in place. Such
support is however worth giving in view of social (employment for the poor/low-income groups ),
economic (foreign exchange savings from a reduced lead import) and environmental benefits
(from avoided cost in disposing of ULABs).

On the basis of discussions with the representatives of all stakeholder groups (users, informal
collectors, small buyers, dealers, brokers, repairers, rebuilders, vangari shops, smelters and
secondary lead-using battery manufacturers), relative efficacy of the presented options are to be
judged and decided for implementation.

An overall policy package also ought to include (a) an awareness campaign, particularly to make
all involved workers and parties aware of the health hazards and environmental impact
associated with lead reuse and recycling; (b) R & D for possible prolonging of battery life; (c)
requiring the smelters to use environmentally sound smelting technologies; and (d) facilitating
high capacity utilization of licensed smelters (e.g., by requiring the informal collectors to bring
ULABs to such smelters) adopting environmentally sound technologies.
 Abbreviation

BBS Bangladesh Bureau of Statistics

CI Corrugated Iron
EEC European Economic Commission
EC European Commission
IQ Intelligent Quotient
IPS Instant Power Supply
MoEF Ministry of Environment and Forest
MSW Municipal Solid Waste
NICd Nickel and Cadmium
OCED Organization of European Cooperation and Development
PVC Polyvinyl Chloride
REB Rural Electrification Board
R&D Research & Development
SLI Starting, Lighting, Ignition
Tk Taka
ULAB Used Lead-Acid Battery
LAB Lead-Acid Battery
ULABs Used-Lead Acid Batteries
UPS Uninterrupted Power Supply
 STUDY TEAM
EXECUTIVE SUMMARY
ABBREVIATIONS
TABLE OF CONTENTS
LIST OF TABLES
LIST OF FIGURES
LIST OF PLATES

CHAPTER 1 INTRODUCTION Page

1
1.1 Context of the Study 2
1.2 Objectives 2
1.3 Methodology 3
1.4 Scope of the Study

CHAPTER 2 LOCAL MANUFACTURING OF LEAD ACID BATTERY AND DEMAND

2.1 Production Capacity of LAB Manufacturing in Bangladesh 4

2.2 Vehicle Growth as per a Proxy of Likely Trend in Demand for Lead-Acid Batteries 4
2.3 Demand and Supply Estimates of Lead 5

CHAPTER 3 MATERIAL COMPOSITION OF LEAD ACID BATTERY DEMAND

3.1 Material Composition of Lead-Acid Batteries 7

3.2 Analysis of used Lead-Acid Batteries 8
3.2.1 Lead Recovery From the Non-Plastic Solid Parts of a Used Lead-Acid 11
Battery
3.2.2 Lead Estimation 12
3.3 Resource (Other than Lead) Recovery Scope 13

CHAPTER 4 USED LEAD ACID BATTERY RECYCLING

4.1 Collection of Used Lead Acid Battery 14

4.2 Separation 14
4.3 Smelting of Secondary Lead 15
4.3.1 Smelting Technology 15
4.3.2 Appropriate Technology for Maximum Recovery 17

CHAPTER 5 LOCATIONAL CHARACTERISTICS OF USED LAB RECYCLING

SITES

5.1 Geographical Dispersion of Smelting in Bangladesh 19

5.2 Scenario of Battery Related Activities in Dhaka City 21

CHAPTER 6 USED LEAD-ACID BATTERY RECYCLING MARKET IN

BANGLADESH

6.1 Lead-Acid Battery manufacturing Market Structure 23

6.2 Used Lead-Acid Battery Collection Market Structure 23
6.3 Used Lead-Acid Battery Recycling Market Structure 23
6.4 Price Variation 23
6.5 Estimated Market Value of Secondary Lead Recovered From Lead-Acid Batteries 27
6.6 Other Resource Recovery From Used Lead-Acid Batteries 27
6.6.1 Re-Use of Plate 27
6.6.2 Re-Use of Plastic Container 27
6.6.3 Recycle of Plastic Cover 27
 6.6.4 Value of Plate Separator 28
6.6.5 Employment Opportunity 28
6.7 Health Hazards and Environmental Impact Associated with Used Lead-Acid 28
Battery Recycling Activities
6.7.1 Health Hazards of Lead 28
6.7.2 Environmental Impact by Recycling Activities 28

CHAPTER 7 CONCLUSION AND RECOMMENDATIONS

7.1 Key Findings 30

7.2 Policy Options for an Economically Viable, Socially Desirable & Environmentally 31
Sound management of ULAB Recycling in Bangladesh
7.2.1 Option 1- Combination of Economic Incentives with Regulatory Support 33
7.2.2 Option 2- Reliance on Regulatory Measures with Focus on the Formal 34
Sector
7.3.3 Option 3- Strict Regulation with Provision of Additional Economic Incentives 35
for Compliances

REFERENCES 37

ANNEX
39
 LIST OF TABLES

Table Title Page

Table 2.1 Estimated Production Capacity and the Structure of Lead-Acid /batteries in 4
Bangladesh
Table 2.2 Vehicle Growth as a Proxy of Likely Trend in Demand for Lead-Acid Batteries 4
Table 3.1 Different Components of Used Lead-Acid Battery by Weight 9
Table 3.2 Lead Content as Percentage of Different Components 12
Table 5.1 Some Basic Data on Lead Smelting in Bangladesh by Location of Factories 19
Table 6.1 Price (in Taka) of Old Lead-Acid Battery by Different Actor Levels by Various 23
Parts
Table 6.2 Probable Minimum & Maximum Price of a Battery (27 Plates) after Separation 24
Table 6.3 Probable Minimum & Maximum Price of a Battery (17 Plates) after Separation 25
Table 6.4 Probable Minimum & Maximum Price of a Battery (13 Plates) after Separation 25
Table 6.5 Minimum Current Market Price of a New Battery 26
Table 6.6 Analysis of Price Variation at Different Stage 26
Table 6.7 Estimated Market Value of Recovered Lead based on Present Local Market 27
Price (@ Tk. 60,000 per ton)
Table 6.8 Estimated Value of Recovered Lead as per Import Price (@ Tk. 90,000 per 27
ton)
Table 6.9 Environmental Impact by Type of Recycling Activities and Suggested 29
Mitigation Measures
 LIST OF FIGURES

Figures Title Page

Fig 2.1 Number of Vehicles on Road in Bangladesh 5

Fig 2.2 Estimated Demand and Supply of Lead 6
Fig 3.1 Different Components of Lead-Acid Battery 7
Fig 3.2 Different Components of Lead-Acid Battery by Percentage 8
Fig 3.3 Used Lead-Acid Battery Before Analysis 9
Fig 3.4 Contents of a Lead-Acid Battery 10
Fig 3.5 Segregated Components of a Battery 10
Fig 3.6 Segregated Components of a Battery 11
Fig 3.7 Some Recovered Lead with Other Parts of a Battery 13
Fig 4.1 Used Lead-Acid Battery Collection Chain 14
Fig 4.2 Smelting into Hole 16
Fig 5.1 Location of Battery Related Activities in Bangladesh 20
Fig 5.2 Location of Battery Recycling Activities in Dhaka 22
Fig 6.1 Increase in value Through the Chain of /used Battery Recycling Actors 24
Fig 6.2 Value Range of Used Batteries After Separation by Battery Type 25
Fig 6.3 Comparison of New Battery Price by Type/Brand 26

LIST OF PLATES

Plate Title Page

Plate 4.1 Battery Separation Occurs on the Footpath 15

Plate 4.2 Scenario of Smelting into Hole 17